TSX VENTURE : EGN Incorporated

April 28, 2011 12:12 ET Incorporated Announces Fourth Quarter & Fiscal 2010 Results

Internet Revenue Grows by 89%

TORONTO, ONTARIO--(Marketwire - April 28, 2011) - Incorporated (TSX VENTURE:EGN), developer of the online resource for engineers today announced its financial results for the fourth quarter and year ended December 31, 2010. revenue was $1,504,846 for the fiscal year 2010, compared to revenue of $1,433,566 for the year 2009. Sales of Internet advertising rose by 89% to 730,270 in 2010 compared to $386,250 for the year ended December 31, 2009. Paid advertising impressions (excluding remnant inventory allocated to networks) across all engineering related sites grew by approximately 83% from 23,352,790 in 2009 to 42,658,118 in 2010.

Revenue across all products for the three months ended December 31, 2010 was $461,905 compared to $489,163 for the fourth quarter of 2009. The net income for the year ended December 31, 2010 totaled $78,120 and $0.00 per Common Share compared with a net loss of ($482,794) and ($0.01) for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($29,670) or $0.00 per Common Share for the fourth quarter of 2010 compared with a operating profit of $7,099 or $0.00 per Common Share for the three month period ended December 31, 2009. Operating loss for fiscal 2010 was ($261,539) or ($0.01) per Common Share compared to an operating loss of ($259,247) or ($0.01) per Common Share for fiscal 2009. The operating expenses in the latest quarter were $299,179 and for the year were $1,146,047 compared to $289,323 for the fourth quarter a year earlier and $1,193,078 for fiscal 2009.

"During 2010 the company's primary web site experienced significant growth across all user and revenue metrics," said John Hayes, President of "Internet advertising revenue rose by 89% to $730,270, but was offset in part by a decline in software sales."

As at December 31, 2010, the Company had a cash balance of $78,244 compared to a cash balance of $106,118 as at December 31, 2009. This cash balance is relatively small when compared to the Company's ongoing obligations as described on page 7 of the Company's Third Quarter 2010 Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on November 22, 2010.

About Incorporated Incorporated (TSX VENTURE:EGN) is the developer-owner of the Web site and business. offers marketing and lead generation services to manufacturers, design consultants and engineering academia around the world. The Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at


EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock- based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.

Forward-Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors. Incorporated
Balance Sheets
(Cdn. $)
As atAs at
Dec. 31, 2010Dec. 31, 2009
Current Assets
Accounts Receivable316,302291,761
Prepaid Expenses and Deposits13,89530,391
Total Current Assets408,441428,270
Property and Equipment, net20,72727,916
Intangible Assets, net316,063412,993
TOTAL ASSETS745,231869,179
Current Liabilities
Accounts Payable and Accrued Liabilities489,015707,147
Deferred Revenue65,64046,614
Promissory Note--24,999
Share Capital15,113,75215,113,752
Contributed Surplus439,996417,959
Statements of Income
(Cdn. $)(unaudited)(unaudited)(audited)(audited)
Three MonthsThree MonthsYearYear
Dec. 31, 2010Dec. 31, 2009Dec. 31, 2010Dec. 31, 2009
Cost of Sales192,396192,741620,338499,735
GROSS PROFIT269,509296,422884,508933,831
Salaries & Benefits131,275135,350536,272535,903
Marketing Expenses36,57618,803112,93286,905
Development Costs48,08755,528204,475263,067
General & Administrative83,24179,642292,368307,203
Operating Income/(Loss) before Under-noted(29,670)7,099(261,539)(259,247)
Stock Based Compensation(5,950)(1,057)(22,037)(25,548)
Amortization Expense(3,364)(50,106)(119,828)(197,999)
Vendor Reconciliation Adjustment481,5240481,5240
Net Income (Loss)442,540(44,063)78,120(482,794)
Basic and Diluted (Loss) per Share0.01(0.00)0.00(0.01)
Weighted Average Number of Common Shares (basic and diluted)36,870,62336,870,62336,870,62335,638,235
Consolidated Statements of Deficit
Deficit, beginning of period(15,805,712)(15,397,229)(15,441,292)(14,958,498)
Net Income (Loss)442,540(44,063)78,120(482,794)
Deficit, end of period(15,363,172)(15,441,292)(15,363,172)(15,441,292) Incorporated
Cash Flow Statements
(Cdn. $)
Three MonthsThree MonthsYearYear
Dec. 31, 2010Dec. 31, 2009Dec. 31, 2010Dec. 31, 2009
Net Loss442,540(44,063)78,120(482,794)
ADD - Items Not Affecting Cash
Stock Based Compensation5,9491,05722,03725,548
Changes in operating assets and liabilities other than cash(518,828)(82,329)(207,150)(221,416)
CASH FROM OPERATING ACTIVITIES(66,975)(75,230)12,834(480,663)
Promissory Notes--(13,317)(24,999)(62,436)
Proceeds of Share issuance------354,744
CASH FROM FINANCING ACTIVITIES--(13,317)(24,999)292,308
Additions to Property and Equipment(1,694)(4,905)(8,494)(17,515)
Additions to intangible assets(1,101)--(7,215)--
CASH FROM INVESTING ACTIVITIES(2,795)(4,905)(15,709)(17,515)
Net Increase (Decrease) in Cash(69,770)(93,452)(27,874)(205,870)
CASH, beginning of period148,014199,570106,118311,988
CASH, end of period78,244106,11878,244106,118

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